NATIONAL MULTIFAMILY HOUSING COUNCIL
Quarterly Survey of Apartment Market Conditions
(July 2013)
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Market Tightness Index1 | Sales Volume Index2 | Equity Financing Index3 | Debt Financing Index4 |
| Jul 2013 | 55 | 46 | 49 | 20 |
| Apr 2013 | 54 | 55 | 56 | 59 |
| Jan 2013 | 45 | 49 | 56 | 57 |
| Oct 2012 | 56 | 51 | 56 | 65 |
| Jul 2012 | 76 | 54 | 58 | 77 |
| Apr 2012 | 74 | 57 | 62 | 65 |
| Jan 2012 | 60 | 50 | 60 | 74 |
| Oct 2011 | 52 | 54 | 54 | 70 |
| Jul 2011 | 82 | 70 | 70 | 74 |
| Apr 2011 | 90 | 65 | 76 | 69 |
| Jan 2011 | 78 | 62 | 74 | 48 |
| Oct 2010 | 77 | 84 | 70 | 82 |
| Jul 2010 | 83 | 78 | 73 | 81 |
| Apr 2010 | 81 | 72 | 71 | 58 |
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Jan 2010 |
38 | 56 | 66 | 49 |
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Oct 2009 |
31 | 59 | 58 | 59 |
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Jul 2009 |
20 | 44 | 39 | 39 |
1 A Market Tightness Index reading above 50 indicates that, on balance, apartment markets around the country are getting tighter; a reading below 50 indicates that market conditions are getting looser; and a reading of 50 indicates that market conditions are unchanged.
2 A Sales Volume Index reading above 50 indicates that, on balance, sales volume around the country is increasing; a reading below 50 indicates that sales volume is decreasing; and a reading of 50 indicates that market conditions are unchanged.
3 An Equity Financing Index reading above 50 indicates that, on balance, equity finance is more available; a reading below 50 indicates that equity finance is less available; and a reading of 50 indicates that equity finance availability is unchanged.
4 A Debt Financing Index reading above 50 indicates that, on balance, borrowing conditions are improving; below 50 indicates that borrowing conditions are worsening; a reading of 50 indicates borrowing conditions are unchanged.
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SURVEY QUESTIONS
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Question #1: How are apartment market conditions in the local markets that you watch? "Tight" markets are defined as those with low vacancies and high rent increases. Conditions obviously vary greatly from place to place, but on balance, apartment market conditions in your markets today are: |
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July 2013 | April 2013 | July 2012 |
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Tighter than three months ago |
24% | 25% | 55% |
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Looser than three months ago |
14% | 17% | 2% |
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About unchanged from three months ago |
61% | 59% | 43% |
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Don’t know or not applicable |
0% | 0% | 0% |
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Question #2: What about sales of apartment properties in the local markets you watch? The sales volume (number of deals) currently is: |
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July 2013 | April 2013 | July 2012 |
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Higher than three months ago |
18% | 30% | 24% |
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Lower than three months ago |
27% | 20% | 16% |
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About unchanged from three months ago |
53% | 45% | 55% |
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Don’t know or not applicable |
3% | 5% | 5% |
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Question #3: What about equity financing for apartment acquisition or development? Considering both price and non-price terms, equity financing today is: |
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July 2013 | April 2013 | July 2012 |
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More available than three months ago |
21% | 20% | 25% |
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Less available than three months ago |
22% | 7% | 9% |
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About unchanged from three months ago |
49% | 61% | 62% |
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Don't know or not applicable |
9% | 12% | 5% |
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Question #4: What about the conditions for multifamily mortgage borrowing? Considering both interest rates and non-rate terms, compared to three months ago: |
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July 2013 | April 2013 | July 2012 |
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Now is a better time to borrow |
8% | 25% | 57% |
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Now is a worse time to borrow |
67% | 6% | 2% |
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Conditions are about unchanged |
21% | 65% | 38% |
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Don't know or not applicable |
5% | 5% | 2% |
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Question #5: Anecdotal reports suggest construction costs have changed substantially over the last year or so. Based on your recent experiences regarding construction costs, would you say: |
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All Respondents |
Excluding “Don’t Know” |
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Construction costs are much higher (>5%) than they were this time last year |
57% | 68% |
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Construction costs are higher(<5%) than they were this time last year> |
24% | 29% |
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Construction costs are about the same as they were this time last year |
1% | 2% |
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Construction costs are a little lower (<5%) than they were this time last year> |
1% | 2% |
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Construction costs are much lower (>5%) than they were this time last year |
0% | 0% |
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Don’t know or not applicable |
16% | N/A |
Note: The July 2013 Quarterly Survey of Apartment Market Conditions was conducted July 8-July 15, 2013; 70 CEOs and other senior executives of apartment-related firms nationwide responded. The April 2013 Quarterly Survey of Apartment Market Conditions was conducted April 8-April 15, 2013; 85 CEOs and other senior executives of apartment-related firms nationwide responded. The July 2012 Quarterly Survey was conducted July 16-July 24, 2012; 82 responded.
